DroneShield lands USD $49.6m European defence deal

Australian counter-drone company DroneShield has secured a USD $49.6 million contract with a European reseller for supply to a European military customer, extending a run of large defence orders from the region.

The agreement covers handheld counter-drone systems. It also includes accessories and software updates.

The buyer is an in-region European reseller. The reseller is contractually required to distribute the products to a European military end-user.

DroneShield said a significant portion of the hardware is already on its shelves. It expects all deliveries under the contract to be completed by the first quarter of 2026.

The company also expects to receive full cash payment for the contract in the same quarter. It said there are no additional material conditions attached to the agreement.

The latest award follows a series of contracts with the same reseller. DroneShield said it has now received 15 contracts from this customer worth more than USD $86.5 million over the past three years.

The company said there is no obligation on the reseller or the end-customer to place further orders. It described the new contract as part of a broader pattern of European demand for its systems.

European growth

The new deal comes after a USD $5.2 million agreement with an in-country European reseller in November. That contract was also for supply to a European customer.

In June, DroneShield announced three follow-on contracts worth USD $61.6 million with another privately owned European reseller. That reseller is also distributing systems to a European military client.

DroneShield said the June package represented the largest single order in the company's history. It added that the package exceeded its total revenue for 2024.

The company has been expanding its physical presence in Europe. Earlier this year it announced a manufacturing and in-house assembly facility in the region. This is its first such site outside Australia.

The run of orders highlights rising European spending on counter-drone equipment. Western militaries have increased investment in systems that detect and defeat small unmanned aircraft in recent years.

Domestic investment

DroneShield is also building up its Australian operations. It recently announced plans to invest AUD $13 million in Adelaide in a new research and development facility.

The company said the project will create 20 highly skilled jobs in the city. The facility will focus on engineering and product development work.

South Australia's state government has promoted the region as a defence and advanced manufacturing hub. The state hosts major naval shipbuilding and other defence projects.

Speaking at the time of the Adelaide announcement, South Australia's Premier welcomed the move.

"South Australia is the Defence State, and has been recognised by the Business Council as the best place in the country to do business. We welcome DroneShield making the choice to conduct research and development here in Adelaide, creating 20 highly skilled engineering roles. As a Government, we have a strong focus on growing our Research and Development ecosystem, which has the capacity to build our economic complexity and our state's prosperity," said The Hon Peter Malinauskas, Premier of South Australia, Government of South Australia.

Beyond defence

DroneShield is also targeting sectors outside defence. It has increased its presence in aviation and critical infrastructure markets.

The company has integrated aviation surveillance data into its counter-drone detection technology. It is using Automatic Dependent Surveillance-Broadcast, or ADS-B, data feeds in its systems.

DroneShield said it has expanded its DroneSentry-C2 software platform. The platform now incorporates ADS-B data from both crewed and uncrewed aviation.

Angus Bean, Chief Product Officer at DroneShield, said the integration reflects the company's broader ambitions in airspace monitoring.

"Integrating ADS-B data reflects our vision for a future of comprehensive airspace awareness," said Angus Bean, Chief Product Officer (CPO), DroneShield. "By expanding DroneSentry-C2's capabilities to include both crewed and uncrewed aviation ADS-B data, we are adding to our customers situational awareness that they need to make faster, safer, and more confident decisions in complex environments."

DroneShield develops artificial intelligence-based platforms that detect and counter drones and autonomous systems. Its products are used across terrestrial, maritime, and airborne environments.

The company supplies military, intelligence and government customers. It also sells systems to law enforcement agencies, critical infrastructure operators, and airports.

DroneShield expects delivery and payment under the new European contract to be completed by the first quarter of 2026.